Section 198 Tax Deducted at Source shall be deemed to be income received

R.S. Kalra 11 Jul 2021 10,404 Views 0 comment Print Income Tax | Articles

Extract of Section 198 of Income Tax Act, 1961

Section 198 Tax Deducted at Source shall be deemed to be income received

198. All sums deducted in accordance with the foregoing provisions of this Chapter shall, for the purpose of computing the income of an assessee, be deemed to be income received :

Provided that the sum being the tax paid, under sub-section (1A) of section 192 for the purpose of computing the income of an assessee, shall not be deemed to be income received:

[Provided further that the sum deducted in accordance with the provisions of section 194N for the purpose of computing the income of an assessee, shall not be deemed to be income received.

Section 198

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Tax deducted at source shall be deemed to be income received. Accordingly, it shall be considered for the purpose of computing the income of assessee.

E.g. Mr. C received interest of ₹ 54,000/- after deduction of ₹ 6,000/- as TDS. The income of Mr. C will be ₹ 60,000/- i.e including the portion of TDS.

However in the following two cases, Tax deducted will not form part of income-

TDS contributed by the employer on non-monetary perquisites provided to employee u/s 192(1A).
TDS deducted by banks, post offices, cooperative banks u/s 194N

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SECTION	TAXGURU LINKS
192	Section 192 TDS on Salary- Analysis
192A	Section 192A \| TDS on Payment of Accumulated balance due to an Employee
193	Section 193 TDS from Interest on Securities – Analysis
194	Section 194 TDS on payment of dividend
194A	Section 194A TDS on Interest (other than Interest on Securities)
194B	Section 194B TDS on winnings from Lottery, Game Shows & Puzzle etc
194BB	Section 194BB TDS on Winning from Horse Races
194C	Section 194C TDS on Payment to Contractor
194D	Section 194D TDS on Insurance Commission- Analysis
194DA	Section 194DA TDS on Payment in respect of Life Insurance Policy
194E	Section 194E TDS on Payments to Non-Resident Sportsmen or Sports Association
194EE	Section 194EE TDS on Payments in respect of Deposit under NSS
194F	Section 194F TDS on Payments on account of repurchase of units by Mutual Fund or UTI
194G	Section 194G TDS on Commission on Sale of Lottery Tickets- Analysis
194H	Section 194H TDS on Commission & Brokerage- Analysis
194I	Section 194I TDS on Rent – Analysis
194-IA	Section 194IA TDS on Purchase of Immovable Property
194-IB	Section 194IB TDS on Rent of Property
194-IC	Section 194IC TDS on Payment Made Under Specified Agreement
194J	Section 194J TDS on Professional or Technical Fees
194K	Section 194K TDS on Income In Respect of Units of Mutual Fund
194-LA	Section 194LA TDS on Payments of Compensation on Acquisition of certain Immovable Property
194-LB	Section 194LB TDS on Income by way of Interest from Infrastructure Debt Fund
194-LBA	Section 194LBA TDS on Certain Income from Units of a Business Trust
194-LBB	Section 194LBB TDS on Income in Respect of Units of Investment Fund
194-LBC	Section 194LBC TDS on Income in Respect of Investment in Securitization Trust
194-LC	Section 194LC \| TDS on Interest Income from Indian Company or Business trust
194-LD	Section 194LD TDS on Interest Income on certain Bonds/Government Securities
194M	Section 194M TDS on payments of certain Sums by Individual & HUF
194N	Section 194N TDS on cash withdrawal from banks/post offices
194O	Section 194O TDS on E-commerce Operator- Analysis
194P	Section 194P Deduction of tax in case of specified senior citizen
194Q	Section 194Q Deduction of tax at source on payment of certain sum for purchase of goods
195	Section 195 TDS on Non-Resident Payments
195A	Section 195A Income Payable ‘Net of Tax’
196B	Section 196B TDS on long term capital gains from units referred to in section 115AB
196C	Section 196C TDS on Income from foreign currency bonds or GDRs
196D	Section 196D TDS on Income of foreign institutional investors from securities
197	Section 197 Certificate For TDS Deduction at Lower Rate
197A	Section 197A – No TDS Deduction – Form 15G & Form 15H
198	Section 198 Tax Deducted at Source shall be deemed to be income received
200 (1) & (2)	Section 200(1) & (2) Time Limit for Deposit of Tax Deducted at Source
200 (3)	Section 200(3) Forms & Time Limit for Submitting Quarterly TDS Returns
203	Section 203 TDS Certificate
200A	Section 200A Processing of Statements of Tax Deducted at Source
201	Section 201 Consequences of Non-Compliance to TDS
203A	Section 203A Tax Deduction And Collection Account Number
206AA	Section 206AA Mandatory Requirement of Furnishing PAN-TDS
206AB & 206CCA	Section 206AB & 206CCA Higher Rate of TDS/TCS in Case of Non-Filers of Return
206C	Section 206C Tax Collection at Source (TCS)
206CC	Section 206CC Mandatory Requirement of Furnishing PAN
40(a)(i)	Disallowance for Non deduction of Tax at Source